July 01, 2025 a 03:31 pm
SBAC: Dividend Analysis - SBA Communications Corporation
SBA Communications Corporation presents a potentially attractive dividend profile, with a stable yield and notable recent growth. With consistent increases over the last five years, SBA provides a solid case for income-seeking investors. However, the high payout ratio necessitates a careful assessment of long-term sustainability.
📊 Overview
SBA Communications Corporation belongs to the telecommunication sector, offering a dividend yield of 1.83%, which may be considered low in comparison to peers but offers growth potential.
| Attribute | Details |
|---|---|
| Sector | Telecommunications |
| Dividend yield | 1.83% |
| Current dividend per share | 3.94 USD |
| Dividend history | 7 years |
| Last cut or suspension | None |
📉 Dividend History
SBA's dividend history highlights consistent growth, emphasizing the company's commitment to returning value to shareholders. This history is vital for assessing long-term income reliability.
| Year | Dividend Per Share (USD) |
|---|---|
| 2025 | 2.22 |
| 2024 | 3.92 |
| 2023 | 3.40 |
| 2022 | 2.84 |
| 2021 | 2.32 |
📈 Dividend Growth
The growth in dividends over time suggests the financial health and profitability of the company. Tracking these metrics aids investors in gauging the potential for future income increases.
| Time | Growth |
|---|---|
| 3 years | 19.11% |
| 5 years | 39.58% |
The average dividend growth is 39.58% over 5 years. This shows moderate but steady dividend growth.
✅ Payout Ratio
Payout ratios elucidate the proportion of earnings or cash flow used for paying dividends, impacting the sustainability of future payments.
| Key figure | Ratio |
|---|---|
| EPS-based | 53.97% |
| Free cash flow-based | 39.08% |
The EPS payout ratio of 53.97% and FCF payout ratio of 39.08% suggest a balanced approach towards dividend payments, indicating a manageable payout policy.
🗣️ Cashflow & Capital Efficiency
Understanding cash flow metrics is crucial for evaluating a company’s operational efficiency and its ability to generate sufficient cash to sustain dividends.
| Metric | 2024 | 2023 | 2022 |
|---|---|---|---|
| Free Cash Flow Yield | 5.04% | 4.76% | 3.64% |
| Earnings Yield | 3.42% | 1.83% | 1.52% |
| CAPEX to Operating Cash Flow | 17.09% | 15.33% | 16.27% |
| Stock-based Compensation to Revenue | 2.78% | 3.24% | 3.79% |
| Free Cash Flow / Operating Cash Flow Ratio | 82.91% | 84.67% | 83.73% |
The cash flow ratios indicate a strong operating cash flow coverage, showcasing efficient capital management and investment in growth areas.
⚠️ Balance Sheet & Leverage Analysis
Balance sheet analysis provides insight into the company's leverage and liquidity, crucial factors in assessing financial stability.
| Metric | 2024 | 2023 | 2022 |
|---|---|---|---|
| Debt-to-Equity | -3.08 | -2.80 | -2.88 |
| Debt-to-Assets | 1.38 | 1.42 | 1.43 |
| Net Debt to EBITDA | 8.46 | 8.38 | 8.97 |
| Current Ratio | 0.69 | 0.36 | 0.69 |
| Quick Ratio | 1.10 | 0.36 | 0.63 |
| Financial Leverage | -2.23 | -1.97 | -2.01 |
SBA’s balance sheet reflects high leverage with negative equity ratios, suggesting potential liquidity constraints in stressed scenarios.
Fundamental Strength & Profitability
Assessing fundamental metrics helps in understanding the company’s economic profitability and operational margins.
| Metric | 2024 | 2023 | 2022 |
|---|---|---|---|
| Return on Equity | -14.67% | -9.70% | -8.75% |
| Return on Assets | 6.57% | 4.93% | 4.36% |
| Net Margin | 27.97% | 18.51% | 17.52% |
| EBIT Margin | 44.79% | 36.32% | 35.15% |
| Research & Development to Revenue | 0.00% | 0.00% | 0.00% |
The profitability metrics indicate robust operating efficiencies, though the negative return on equity highlights challenges in generating shareholder value.
📈 Price Development
Dividend Scoring System
| Criteria | Score | Scale |
|---|---|---|
| Dividend yield | 3 | |
| Dividend Stability | 4 | |
| Dividend growth | 4 | |
| Payout ratio | 3 | |
| Financial stability | 2 | |
| Dividend continuity | 4 | |
| Cashflow Coverage | 3 | |
| Balance Sheet Quality | 2 |
Overall Score: 25/40
🏅 Rating
SBA Communications Corporation presents a mixed dividend profile. While offering steady growth and a commitment to dividend payments, high leverage and low dividend yield may concern some investors. Consideration of the company's ability to maintain its current payout amidst its financial structure is advised, positioning SBAC as a cautious buy for income-focused investors.